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by startingup
6088 days ago
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I think the real debate here is that value in the internet is moving relentlessly away from content producers towards content aggregators. Even a big newspaper site doesn't have the diversity that you find in an aggregator like Google News; likewise, no tech blog can compete with the diversity of news in Hacker News. I visit TechMeme and Hacker News far more than I visit any single blog, for example. TechMeme makes far more money than any professional tech blogger too. Aggregators tend to build much more value to themselves quickly by riding on other people's content. Yet, aggregators are worth nothing without the underlying content. This irks many content producers, particularly the professional ones whose output accounts of the bulk of the traffic that aggregators end up sending. This trend of professionally produced content accounting for the bulk of the links is evident even in Hacker News. If these trends continue, giant aggregators could end up controlling much of the content. Yahoo already produces a lot of content, and licenses content for Yahoo News (which is fitting considering Yahoo News has more traffic than any news site in the world). Google News, Digg etc. could follow. This is the future I suspect Murdoch does not like, because it appears from his perspective to be third parties building value out of his content, without compensating him. Legally, I am not sure he has a claim - if there is a lawsuit on this, it will reach the Supreme Court, that's for sure. |
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When you read a story in a newspaper, you almost automatically consume other content in that paper, including ads. Why pick up another paper to read more news when it's already in your hands? To a lesser extent the same is true for cable news, you watch a brief segment and you are bombarded with "coming up next" teasers and flashy graphics, pretty anchors, etc., all designed to keep you on that channel (watching ads).
The web is way less sticky than even television, sure you could flip channels but you lose context, and you might have to keep flipping to find something interesting, broadcast is a push medium. Contrast this with the web page: what is the easiest thing to do after reading the linked story? Search around the new site (that you may not be familiar with) or hit the back button and resume what you were doing: Pulling down stories you want to read, instead of waiting to see if something interesting comes up.
I think Murdoch gets the power of the aggregator, I don't think he understands that he has always pushed content to consumers. (Yes a lot of work goes into creating a brand that attracts these consumers to the paper/network but once they are there they have content pushed to them.) The web is a pull medium.
Billions were spent on the "portal wars" of the 90's, and everyone who participated lost to a page with a text box and 2 buttons.